Wendy Greuel seeks to reframe DWP issue, blame Eric Garcetti

At nearly every campaign stop, mayoral candidate Eric Garcetti challenges Wendy Greuel's independence from the powerful Department of Water and Power employees' union, citing the $3.5 million spent on her behalf by a union-led group.

DWP workers are seeking raises next year, and their union-led SuperPAC is breaking spending records on Greuel, according to Garcetti's charges in a new television advertisement launched this week. His 30-second spot highlights the utility's high salaries, calling her the "DWP's mayor. "

But as Garcetti hammers away at Greuel over the union's money - which comes as Greuel's own campaign runs short of funds - the controller is increasingly launching counterattacks over the DWP issue.

At a radio debate this week at the Petersen Automobile Museum, Greuel pointed to raises granted in 2009 to the DWP workers during Garcetti's City Council presidency.

"(Garcetti) stood up and gave them raises in 2009 and said, 'This is good public policy,' Greuel told the crowd. "So at the time, when he thought no one was looking, he did that, and now that it seems politically expedient, he can criticize that. "

The DWP salaries have become the latest political football in the L.A. mayor's race, with both candidates bickering over the generous wages, which are significantly higher than other utilities.

Greuel is seeking to tie her rival to the DWP, said Dan Schnur, director of USC's Jesse M. Unruh Institute of Politics, and put some distance between her and the utility.

"She's not going to win the argument over the DWP (SuperPAC)," Schnur said. "But by counterattacking, she is trying to avoid losing on it. "

City Hall watchdogs say Greuel's attack is undercut by her support of DWP raises during her own time on the City Council. Nor has she made salaries a focus during her time as city controller, critics say.

Greuel maintained in a recent interview she spoke out about the wage disparity during her time on the City Council, as a board member of the Executive Employee Relations Committee, which negotiates with the DWP union.

"I have said numerous times that the disparity needs to be eliminated going forward," Greuel said.

Garcetti acknowledged the wage disparity issue needs to be addressed and pointed to his work on pension reform for city workers.

"I am the only person in the race who has delivered," Garcetti said. "Who has done reductions on pensions, and gotten concessions. "

While a new issue in the election, city audits and reports have long chronicled the disparity of DWP salaries. Some workers at the DWP make 20-46 percent more than their counterparts at other utilities, according to a report issued last year. The report also found that unlike at City Hall, the DWP had done little to cut costs.

Attention over DWP salaries ratcheted up in the race when Brian D'Arcy, head of the International Brotherhood of Electrical Workers Local 18 union, told the Los Angeles Times that raises are expected when the next mayor negotiates with his union. D'Aarcy, who didn't return phone calls, is also one of the leaders of the SuperPAC backing Greuel.

In 2005, while on the council Greuel and Garcetti both voted to boost DWP salaries for some workers at least 17 percent over a five-year period.

In 2009, another five-year package was granted, allowing raises of roughly 2-4 percent per year, depending on inflation. Greuel had moved on to the City Controller's Office by then.

In an interview, Garcetti said he regrets the 2005 raises, saying the council had no idea the recession would hit years later. "There are lessons you learn along the way," he said. "I have owned that."

But he defended the 2009 package of raises, stating the council negotiated parts of the pay raise to save money on pension costs.

Asked if she regretted approving the 2005 raises, Greuel said the council voted with the information they had at the time.

Jack Humphreville, a DWP watchdog, contends wage disparity or pensions were never seriously addressed when either Greuel or Garcetti served on the City Council.

"Neither Greuel or Garcetti talked about salaries," said Humphreville, who also believes Garcetti could have done more to oversee pension reforms, while Greuel should have more closely audited the department.

City Administrative Officer Miguel Santana, who recommended approval of the 2009 raises, agreed that DWP salaries need "to be closely watched" going forward, but maintains there are factors to consider when comparing city wages versus those of the DWP. Only 25 percent of the DWP's budget goes to labor costs, compared to 90 percent of the city's budget that funds employee costs, Santana said.

Amid years of furloughs and layoffs for city workers, the high DWP wages angers Paul Castro, a city worker and Service Employee International Union 721 member.

"We should get the same deal as the IBEW at a minimum," said Castro, who hasn't endorsed in the race, although his union is backing Greuel.

Both Garcetti and Greuel have stated in recent months they oppose pay increases next year for DWP workers, given the city' s precarious financial state. And both have said in recent weeks the wage disparity must come down, although neither has given many specifics on it.

Greuel also is increasingly talking about seeking pension changes at the DWP. She argues that she came out first about the issue in the race.

"I was the first to be out there, and say, I am going to be the most critical, in some ways, even more critical," Greuel said. "This needs to be fixed. "

Garcetti spokesman Jeff Millman said Greuel "had every opportunity to audit the pensions and salaries at the DWP during her time as controller. "

Schnur believes that Greuel's ability to turn around the DWP argument is key to the election.

"She has to convince voters she isn't beholden to the DWP union," Schnur said. "If she can make that sale, she will be elected mayor. If she can't, then she won't. "